It’s a big decision deciding to start your own business. But, you’re not alone. It’s estimated that business startups increase by approximately 3% every year.
The problem for many startups is the inspiration or the motivation, you’ve come up with a brilliant idea that will work. But, what you need is the appropriate finance.
One of the first steps in starting a business is to create your budget. This allows you to see what money you’re going to need and when. It can also be used to create an expected revenue figure and potential profit.
These will be important when obtaining finance.
Stornoway is a corporate finance specialist and a great choice if you’re looking for some funds to get your business going. Providing you have a business plan and have used your budget to create cashflow projections your application will be taken seriously.
Of course, you’ll need to adjust your figures to show that you can afford expected loan repayments, but you’ll find this is an effective way to get your business off the ground.
This is probably the best way of funding a business but, sadly, it’s not an option for most people. If you have savings you can use them to fund your business. Just make sure you’ve calculated all the expected costs and allowed a little extra for unexpected costs.
Family & Friends
If you haven’t got enough savings of your own then you can ask your family and friends. They may have enough money individually or together to help you get started.
Should you choose this option it is imperative that you draw up a proper contract. It will prevent any hard feelings and help to ensure no one falls out over a little money. It’s a common scenario when money is involved and a shame to damage family ties and friendships over.
If the amount you need to get started is relatively small you may be able to get the funds you need from your credit card, or cards. You’ll need to make sure you have enough coming in to cover the expected repayments.
This can be a good way of getting started and paying your suppliers while earning rewards. Of course, the rate you get will reflect your current credit score and ability to get more credit in the future.
It’s possible to tell the world about your business idea in an attempt to attract some investment. There are plenty of private investors who are happy to invest in a business that shows potential, all you have to do is demonstrate the potential.
If you don’t need a lot of funds to get started then you may find that factoring your invoices is a better idea. A third party will pay you for all your customer account balances, minus a small fee. You’ll get the money instantly to pay your suppliers and the factor will chase the full payment from your customer.
It’s a popular method of freeing funds without having to actually borrow anything.